Understanding Business Borrowers

Course Number: UBB1

Course Code: ABA 193

Learn how to identify and understand business industries and types—and why they borrow money. An introduced to the basic concepts of business financial accounting and entity structures is also covered.

Learning Obj​​​​ectives
The courses included in the Level 1: Understanding Business Borrowers Curriculum and their objectives are listed below:
Business Sectors and Operating Cycle
– Explain the operating cycles of various business industries
– Analyze the financial data and evaluate the risks of the different industries

Why Businesses Borrow
– Explain how a firm’s cash flow cycle can affect debt requirements and repayment sources
– Identify the reasons businesses need to borrow
– Identify the various borrowing arrangements used to structure a business loan
– Describe the way alternative lending sources compete with or complement community banks

Business Legal Structures and Life Cycles
– Define the basic types of legal structures available to a business
– Describe the general characteristics of the four stages in the business life cycles

Introduction to Business Financial Statements
– Describe the financial statement analysis process
– Describe basic guidelines for preparing a spreadsheet and analyzing the data
– Identify and evaluate a borrower’s financial strengths, weaknesses, and uncertainties
– Explain the different types of financial statement preparation
– Describe the other components associated with financial analysis

How Business Financial Statements are Constructed (Accounting Refresher)
– Compare and contrast the cash method and accrual method of accounting
– Construct a balance sheet and income statement on the accrual basis for an example business

ABA Diplomas/Certificates​: This course applies to the ABA Certificate in Commercial Lending

Audience: Commercial and/or Business bankers and Credit Analysts

Prerequisites: n/a

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Member Price: $150.00
Non-Member Price: $200.00
Textbook Charge: $0.00

Credits: 0.50; ICB: 8.0 CLBB

Length: 6.3 hours

ABA Training